D.R. Horton (DHI) Reports Worse than Expected Results for Q2 2025

D.R. Horton, Inc. (NYSE: DHI) recently released its financial results for the second quarter of fiscal 2025, revealing a notable decline compared to the previous year and falling short of market expectations. The company also updated its guidance for the remainder of the fiscal year, reflecting current market conditions and strategic priorities.

D.R. Horton’s Q1 EPS Falls Short of Market Expectations

In the second quarter of fiscal 2025, D.R. Horton, Inc. reported net income attributable to the company of $810.4 million, or $2.58 per diluted share. This represents a significant decrease of 27% in earnings per share compared to $3.52 in the same quarter of fiscal 2024. The company’s consolidated revenues for the quarter were $7.7 billion, a 15% decline from $9.1 billion in the previous year. These figures fell short of market expectations, which anticipated earnings per share of $2.67 and revenue of $8.09 billion.

The decline in financial performance can be attributed to several factors, including a slower-than-expected start to the spring selling season. Potential homebuyers have shown increased caution due to affordability constraints and declining consumer confidence. As a result, net sales orders and homebuilding revenues decreased by 15% from the prior year period. Despite these challenges, the company’s home sales gross margin remained at 21.8%, aligning with the midpoint of its guidance range.

D.R. Horton has maintained a strong focus on operational efficiency and financial stability. The company returned $1.4 billion to shareholders through share repurchases and dividends during the quarter, reducing its outstanding share count by 7% from a year ago. Additionally, the company’s return on equity (ROE) and return on assets (ROA) for the trailing twelve months were 17.4% and 12.2%, respectively, highlighting its commitment to maximizing shareholder value.

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D.R. Horton Updates Fiscal 2025 Guidance Based on Market Conditions

Looking ahead, D.R. Horton has updated its guidance for fiscal 2025, reflecting the company’s response to current market conditions. The company now expects consolidated revenues to range between $33.3 billion and $34.8 billion for the fiscal year. Additionally, the company anticipates closing between 85,000 and 87,000 homes through its homebuilding operations. Consolidated cash flow provided by operations is projected to exceed $3.0 billion, and share repurchases are expected to total approximately $4.0 billion.

D.R. Horton remains committed to maintaining a disciplined approach to capital allocation, focusing on enhancing long-term value for shareholders. The company plans to continue returning capital through share repurchases and dividends, with expected dividend payments of approximately $500 million for the fiscal year. The income tax rate is anticipated to be around 24.0%, in line with previous estimates.

The company’s leadership emphasizes its strong liquidity position, low leverage, and experienced operators as key factors providing significant financial and operational flexibility. D.R. Horton is well-positioned with its affordable product offerings and flexible lot supply, enabling it to adapt to changing market conditions and maximize returns in each of its communities.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.